Social Security Refund after death

W

wcan

New Member
Jurisdiction
Maryland
Hi,

My mom passed away 9/22/2023- 5 days after her death she received her monthly automatic deposit from Social Security for $2000 into her bank account.

By the time I was able to get the letter of administration, she had a remaining a remaining balance of $500 from the auto payments she had setup.

After I closed the account, I expected a check made out to her estate for the $500 balance- I found out that the bank returned the remaining balance to the Social Security Administration.

Can they do that? I have never heard of the bank stepping in to return money to the government. Help?
 
wcan said:
Can they do that?
Click to expand...
The "CAN" has been established by the "DID".

What to do if someone dies

Learn when and how to report a death, and what benefits we offer to eligible family members.

How to report a death

[h2][/h2]
Funeral homes generally tell us when someone dies. So, you don't typically need to report a death to us.
If a funeral home isn't involved or doesn't report the death for some reason, you should call us and provide the name, Social Security number, date of birth, and date of death for the person who died.

Call +1 800-772-1213
Call TTY +1 800-325-0778 if you're deaf or hard of hearing.

Outside the United States

If you live outside the United States, contact a Federal Benefits Unit. If the person who died was a U.S. citizen, you should also report the death to the nearest U.S. embassy or consulate.

Benefits for surviving family members

Lump-sum death payment


A spouse might get a one-time death benefit payment of $255. If there's no spouse, minor children may be eligible for the payment.
A spouse who doesn't live in the same home may be eligible if they can get benefits based on the record of the person who died.
You must apply for this payment within 2 years of the family member's death.

Call +1 800-772-1213
Call TTY +1 800-325-0778 if you're deaf or hard of hearing.

Survivor benefits


Certain family members may be eligible for monthly Survivor benefit payments.

See who can get Survivor benefits


Once a person dies, they are no longer eligible for Social Security. Any payments received after the month in which a person dies must be returned to the Social Security Administration (SSA). It's not unusual for checks to be mailed or direct deposited the month after a person dies, but that money cannot be kept.

When Does the Last Social Security Check Arrive?

It's not unusual for social security payments to be issued after someone dies, as there can be a lag between the time a person's death is reported to SSA and stopping direct deposit or check processing. The fact that payment arrives after someone dies doesn't mean that it can be kept. It is important to report a death to Social Security right away and to avoid keeping payments to which the deceased individual is not entitled.

Keep Month-of-Death Payments

Social security pays out benefits one month in arrears. This means that a social security check that arrives in one month is a payment for the previous month. To illustrate:
  • The social security check a person receives in January covers the month of December.
  • If that person passes away in January, there is no need to return the payment received that month.
  • It does not matter if the payment arrives before or after the person dies within the month of January.
  • Even if they die on January 1, the payment that arrives that month can be kept because it was for December.

Return All Subsequent Payments

Social Security does not pay any benefits for the month in which a person dies. This means that any payments received the month after a person dies must be returned to the SSA. The same is true for any subsequent payments.
  • If a February social security payment is sent to a person who died in January, it cannot be kept.
  • This is because the February payment would be for January, the month in which the person died.
  • Even if they lived until the last day of January, all funds received in February must be returned.
  • The date in January the person passed away is not relevant, as proration is not a factor with social security payments.

Returning Social Security Benefits

Unearned social security checks or direct deposits should be returned through the same method they came in. To return social security benefits that arrive after the month in which a person passes away:
  • Direct deposit: Contact the deceased person's bank if they were receiving direct deposits from Social Security. Notify them that any deposits received after the month of death must be returned to SSA.
  • Paper checks: Do not cash social security checks that arrive after the month in which a person dies. Return them to the Social Security office listed on the envelope or contact the local SSA office for a return address.

Social Security Death Benefits

Once a person dies, that individual is no longer eligible to receive social security payments. However, in some cases, family members may be eligible for payment. Survivors who believe they may be eligible for Social Security death benefits must apply and be approved. These benefits are never issued in the name of the deceased individual.

Lump-Sum Death Benefit

The lump-sum death benefit (LSDB) is a one-time benefit of $255 that may be used toward the funeral or burial expenses. If the deceased individual has a surviving spouse with whom they were living at the time of their death, the payment goes to that person. Otherwise, the payment may go to:
  • A non-cohabitating surviving spouse who was receiving benefits associated with the deceased's Social Security record
  • Surviving biological or adopted child (adult or dependent)

Survivors' Benefits

Certain individuals may be entitled to receive monthly survivors' benefits based on the deceased person's Social Security record. These benefits are dependent on how long the deceased paid into Social Security and how old they were when they died. Common scenarios in which a person qualifies for survivors' benefits include:
  • Surviving spouse over the age of 60 (or over 50 if disabled)
  • Individual responsible for caring for the deceased person's child who is under the age of 16
  • Child of the deceased who is under 18 (or 18-19 if in high school)
  • Dependent parent of the deceased (over the age of 62)

Staying Informed About Social Security

Knowing what to do when a social security payment arrives after the death of a family member can help you better prepare for the subsequent steps you will need to take. Understanding your rights and responsibilities as a survivor can help you receive benefits that can assist with the funeral costs, as well as potential monthly benefits to which you may be entitled.
 
So if she passed away on September 22nd, that means the September 27th payment she recieved was for August.

Citi Bank owes me (her estate) $500....
 
Last edited:
I called CITI- they said if she receives a payment even if it's one day after her death, it needs to be returned.

I'm calling the SS office now to confirm.....
 
zddoodah said:
That doesn't make sense. A payment made on Sept. 27 would likely be for October.
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From @army judge 's post above:


Social security pays out benefits one month in arrears. This means that a social security check that arrives in one month is a payment for the previous month. To illustrate:
  • The social security check a person receives in January covers the month of December.
  • If that person passes away in January, there is no need to return the payment received that month.
  • It does not matter if the payment arrives before or after the person dies within the month of January.
  • Even if they die on January 1, the payment that arrives that month can be kept because it was for December.
 
I called SS and army judge' post is correct. Payments are made arrears. Which means the September 27 payment was for August. SS said it is protocol for Citi to return the balance to SS.

I now have to fill out SS form 1724 and SS will deposit the money in my dad's account.

Im pissed nobody at Citi told us this. Had I not done research, that money would have disappeared.
 
zddoodah said:
That doesn't make sense. A payment made on Sept. 27 would likely be for October.
Click to expand...
When I applied for SS, I was told at their office that payment is a month behind. So that retiring in June meant I would not receive funding until August, which would be for July.

I know they want the money back, but think it's wrong if they are paying for the prior month
 
Zigner said:
From @army judge 's post above:


Social security pays out benefits one month in arrears. This means that a social security check that arrives in one month is a payment for the previous month. To illustrate:
  • The social security check a person receives in January covers the month of December.
  • If that person passes away in January, there is no need to return the payment received that month.
  • It does not matter if the payment arrives before or after the person dies within the month of January.
  • Even if they die on January 1, the payment that arrives that month can be kept because it was for December.
Click to expand...
My mother passed at the end of October and we were required to return 100% of the money received from SS that month.
 
Paddywakk said:
My mother passed at the end of October and we were required to return 100% of the money received from SS that month.
Click to expand...

Please accept my sincerest condolences upon the passing of your mother. May she forever rest in eternal peace.

The US Government can be relied on to make the most simple thing complex.

That same government seems to have many things in common with certain "shady" operators.

The federal government has perfected the art of double speak, triple speak, and even "gobblygook".

It is known the planet over for lying and treaty breaking, just ask some of my Native American relatives.

I won't delve into poor Dred Scott and the despicable, dreadful Supreme Court "decision".

That said, I've learned to minimize my contacts with governmental entities, especially those on the Federal level.
 
They are giving you the 500 back? How? I had something similar with my father but i was out of the country and social security was notified but hospice had the wrong soical. I was out of the country for a over a month but his check still came, The teller gave money out of it so that my mom could live on because we thought he was entitlled to it and the bank went and pressed charges against me for felony theft. my dad died april 25th and his check came on the 3rd, but I wasn't in the country until almost june.
 

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